Morning Briefing - 15 November 2022
CommoPlast
Morning Briefing
15 November 2022
Brent: $93.14 (- $2.85）
WTI: $85.87 (- $3.09)
Naphtha CFR Japan: 727 (+ $14)
Ethylene CFR NEA: 880 (Stable)
Ethylene CFR SEA: 880 (Stable)
Propylene FOB Korea: 825 (+ $5)
Propylene CFR China: 855 (+ $10)
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The Chinese import homo-PP market remained elevated on the first trading day of the week with deals for non-dutiable Vietnamese yarn and injection cargoes observed at $960/ton CFR China, for December arrival.
In the meantime, it is important to note that Chinese buyers are not exactly aggressive in scouring the market for cargoes. Customers, especially traders, tend to keep risk appetite at manageable levels.
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In statistics news, China produced more than 6.7 million tons of PP, PE, and PVC in October 2022 – the highest level in 2022 despite multiple events that were initially expected to impact outputs, including the weeklong National Day holiday, the Communist Party Congress, and the renewed lockdown.
Among the grade, output for HDPE hit above the 1 million tons mark for the first time since CommoPlast started tracking local petchem output in 2015.
Obviously, with historically high production outputs, domestic availability for PP, PE, and PVC seems rather comfortable which has been pressurising spot prices in this market until recently.
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It is reported that a major Taiwanese producer decided to postpone the new PVC price announcement to next week to assess the outlook further after Chinese customers actively swept the import ground last week for all competitive PVC parcels.
As reported last week, deals for USA PVC were concluded at $650-670/ton for an estimated quantity of nearly 26,000 tons for February 2023 arrival. Chinese market participants also told CommoPlast about the 30,000 tons transactions for Indonesian PVC at $690-700/ton CFR China.
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